Power Machines won a tender for delivery of power equipment for construction of Quileco Hydro Power Plant (Chili). The contract worth of 20 million USD is planned to be signed in March of this year. Quileco HPP shall be the first Russian large power project in Chili.

Brazilian divisions of Voith Siemens Hydro (Germany), Alstom (France) and General Electric (USA) were the main competitors of Power Machines in the tender held by Colbun S.A., one of the Chilean leading electric power producers. Flexible price policy and successful many years' operating experience of the Power Machines’ equipment at the hydro power plants in Argentina, Brazil and other countries of the region, as well as application of some innovative technical solutions (for example, environmentally safe teflon bearings and footstep bearings of hydrogenerators) proved out to be advantages of the Company’s proposals.

Under the project, Power Machines shall be responsible for design, manufacture, supply, erection and commission of Francis hydroturbines with regulators, generators with excitation systems, auxiliary electrical and mechanical equipment for two power generating units of 36.5 MW each.
 
Apart from this, engineering company Energ Power Ltda. (Brazil), main partner of the Power Machines on the South American market, will be engaged as a manufacturing subcontractor for supply of auxiliary electrical and mechanical equipment and performance of erection works.

In view of strict requirements of the Customer as to delivery deadlines, the equipment for the first power generating unit shall be delivered to the construction site in June 2006 and that for the second power unit - in August 2006. The Plant is planned to be put in operation in June 2004.

Participation in tender for construction of La Igueira HPP (two power units of 77.5 MW each) is the second important project of Power Machines to enter the Chilean energy market. The tender results are expected to be known in March 2005.

Hydro power resources is the main energy source in Chili. In total, they account for generation of 75 % of electrical energy in the country. Quileco HPP will be constructed on the Laja river, 35 kilometers from Los Angeles, in the central region of the country. It is assumed that the Power Plant with rated capacity of 73 MW will satisfy the growing demand of the population and industry for electric power in the said state.

Enterprises of the Power Machines have been supplying equipment to the energy market of Latin America since 1976. Nowadays, hydro power plants of Argentina, Brazil, Columbia and Mexico are operating the Company’s power generating equipment with the total installed capacity of 11 000 MW.